AT&T Agrees to Acquire Satellite Provider DirecTV in Mammoth Deal

The rumor mill has been churning for a couple weeks about a tie-up of AT&T and DirecTV. As of Sunday afternoon, it’s no longer a rumor. The deal would create a giant that over Wireless phone service, DSL and fiber landline internet, and nationwide TV service through both satellite and U-Verse. Let’s take a peak at the details of the deal.

In all, the deal is worth 67.1 billion with AT&T paying $48.5 billion to share holder and the company also taking responsibility for DirecTV’s debt. For DirecTV shareholders that equates to $95 a share, roughly 1/3rd cash, 2/3rds stock. The deal will include rights to DirecTV’s NFL Sunday Ticket, thought it is unknown if that will expand to U-Verse customers. AT&T will also take possession of DirecTV’s Root Sports Network and its minority stake in other networks.

AT&T is also planning a coinciding rural broadband push bringing internet access of at least 6mbps to 15 million new customers, bringing its eventual broadband customer base up to 70 million. After the buyout closes, former DirecTV services will be available via AT&T’s 2300 stores and its authorized providers. According to the release, DirecTV customers will enjoy consistent pricing throughout the US at least 3 years after the merger. Since the deal is subject to regulatory and board approvals, the deal is expected to close by this time 2015.

What do you think of DirecTV becoming part of AT&T? Let us know below or on social media.

About Benjamin J. Roethig

Ben is an external Associate Editor at Geek Beat. He can be described connoisseur of things technological. Ben's hobbies include reading up on Military, Naval, and Aeronautical history, playing around with his Macs and iDevices, exploring the mountainous bluffs of Dubuque, IA and Galena, IL, and proving that 15+ years of practice does not make perfect on his guitars. If you want to find him Ben can be found on Twitter (@benroethig), Google (gplus.to/benroethig), and as an occasional guest on Apple related podcasts.